Beyond Equilibrium Economics

Chris Coyne posts this in the “Coordination Problem” Blog HERE 

“Epistemic arguments play a significant role in the foundations of market liberalism as exemplified, in particular, by the work of F. A. Hayek. Competition in free markets is claimed to be the most effective device both to utilize the knowledge dispersed throughout society as well as create new knowledge through innovation competition. The fast pace with which new economic opportunities are discovered and costs are reduced is considered proof of the benefits of free markets to the common good. However, with its inherently unpredictable consequences, innovation competition is actually ambiguous in this respect. This feature raises questions over the stringency of market liberal pleas that oppose quests for redistribution and environmental concerns in an absolute fashion.”

Abstract from Ulrich Witt's paper, "Competition as an Ambiguous Discovery Procedure: A Reappraisal of Hayek’s Epistemic Market Liberalism," published in the latest issue of Economics & Philosophy”.  

HT: Coordination Problem

Comment

Worth reading, and bookmarking “Coordination Problem”, to read regularly. I do not agree ( I particularly like the last sentence) with everything on it, but it is close to my own moderate Libertarianism (we have some ways to go on their general stance on Adam Smith’s “invisible hand”).